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Perth Now
7 hours ago
- Business
- Perth Now
Millions to win from huge change to this debt
The Albanese government has chosen their first winners in the new parliament, as it promises to shave 20 per cent off all student debt in its first sitting week. Labor is set to introduce legislation as parliament returns this week that will wipe $16bn in student debt for approximately three million Australians. It will target loans including HELP debt, VET loans and apprenticeship loans. The government said the average debt-holder will have a $5520 reduction. NewsWire / Jeremy Piper Credit: News Corp Australia According to calculations from the government someone with the average HELP debt of $27,600 will have $5520 wiped from their outstanding loans. People at the upper end of debt, exceeding $60,000, could see a reduction of more than $12,000. The legislation, if it passes, will also raised the minimum repayment threshold from $54,000 to $67,000, meaning low-income earners will not have to start paying back their debt. Following the passage debt-holders will not have to do anything to get the reduction, it will be applied by the Australian Taxation Office automatically. Education Minister Jason Clare said the change would 'take a lot of weight off the shoulders' for recent graduates 'You don't start paying off your university degree until your degree starts to pay off for you,' he said. Education Minister Jason Clare said the reform will 'take a lot of weight off' young people. Canberra. NewsWire / Martin Ollman Credit: News Corp Australia The reform was first promised in November 2024, well before the election, after the government changed the way student loans were indexed. At the time this brought down student debts by about $3bn. Prime Minister Anthony Albanese announced the 20 per cent reduction following the indexation reform as a pitch for his government to make the education system 'fairer and affordable for every Australian'. 'No matter where you live or how much your parents earn, my Government will work to ensure the doors of opportunity are open for you,' Mr Albanese said in November. Now, with the new Parliament beginning on Tuesday, the government is promising the 20 per cent cut will be the first thing it does. 'We promised cutting student debt would be the first thing we did back in Parliament,' Mr Albanese said. 'And this week we're introducing the legislation to make it happen. 'Because getting an education shouldn't mean a lifetime of debt.' Prime Minister Anthony Albanese said the reduction would be the first thing his new government does. NewsWire / Martin Ollman Credit: News Corp Australia The legislation will be introduced on Tuesday, but the government will need the support of either the Greens of the Coalition to get the it through the Senate. This means it will likely be a few weeks before it actually comes into effect. Both the Greens and the Coalition have indicated they are unlikely to block the bill, but both have voiced concerns. Liberal education spokesman Jonno Duniam told the ABC's Insiders program on Sunday that Australians 'spoke pretty clearly at the last election' about this key Labor policy. 'We're not really in business of standing in the way of cost-of-living relief,' Senator Duniam said. 'We'll go through our process but I expect this will pass the parliament.' Senator Jonno Duniam indicated the Coalition would likely help pass the bill. NewsWire / Martin Ollman Credit: News Corp Australia For their part, the Greens requested the Parliamentary Library analyse how much the debt reforms will reduce balances since 2022. It found that a student who had a $30,000 debt in 2022 would have a $27,619 debt after the 20 per cent cut, meaning it would only be a 7.9 per cent cut on that 2022 level. This is because student debt increases each year relative to inflation. The Greens position is that it wants all student debt to be wiped and free university and TAFE to be reintroduced. Greens higher education spokeswoman Mehreen Faruqi said that 'one-off debt reduction won't fix the enormous burden' of university fees and outstanding student debt. 'Of course any student debt relief is better than none, but we are demanding all student debt be wiped and a return to free uni and TAFE, funded by taxing big corporations to pay their fair share,' she said. Greens higher education spokeswoman Mehreen Faruqi said the change will not fix 'the enormous burden' of student debt. NewsWire / Luis Enrique Ascui Credit: News Corp Australia Student debt massively increased since the previous Coalition government introduced its 'Job-Ready Graduates' scheme in 2021 which increased the costs students have to pay for degrees that were purportedly less desirable. This was designed to incentivise students to study degrees in fields such as science and engineering. In practice there was only a marginal reduction in the number of students studying arts degrees, but the costs for those courses increased as much as 140 per cent – massively increasing the debt burden for some students.
Sky News AU
10 hours ago
- Business
- Sky News AU
Labor's 20 per cent student debt cut delivers only 7.9 per cent real reduction, parliamentary analysis finds
The Albanese government's much-celebrated 20 per cent student debt cut will deliver only a 7.9 per cent real reduction, new parliamentary library analysis has revealed. The research, released by the Australian Greens on Monday, showed the $16 billion student debt relief package has been eroded by three years of indexation. High inflation over the first term of the Albanese government caused student debts to balloon as they were indexed each financial year. According to the analysis, students owing $30,000 in loans when Labor came to power will see their debt cut to $27,619 after indexation and the 20 per cent cut are applied. That is just $2,381 in relief, or a 7.9 per cent reduction on their original balance. Despite the government's changes to indexation, the compounding impact of annual increases has significantly diluted the long-term benefit of the one-off policy. The policy drew widespread criticism when it was announced for its high cost and perceived unfairness, particularly for taxpayers without student debt. The total cost of the policy was earmarked at $16 billion, providing assistance to just three million people, while 24 million Australians without HELP debt receive nothing. Concerns over fairness also intensified after Sky News revealed that nearly 40,000 overseas-based debtors will receive close to $50 million in taxpayer-funded relief. The students that were most reckless with their loans also stand to benefit the most, with some individuals racking up hundreds of thousands in debt. Not-for-profit research body e61 Institute recently exposed the way the policy will unfairly benefit students who graduated in 2024. University students who finished their degrees in 2024 will receive twice as much relief as people who left in 2020, according to e61. 'Most HELP debt is held by university graduates, who have much higher lifetime incomes than the average taxpayer,' e61 Research Economist Matthew Maltman said. 'And even if you look within graduates, those with more costly degrees tend to go on to earn higher incomes in the future. 'The current policy isn't at all targeted and that means it's going to give a very large amount of debt relief to future lawyers, dentists and doctors.'
Sky News AU
a day ago
- Business
- Sky News AU
Labor to act on key cost-of-living promises in first week of parliament
Australians are weeks away from receiving a 20 per cent cut to their student debt, with Labor vowing to scrap HECS and HELP debt as the government's first priority once parliament resumes, following the government's landslide election victory. The changes will be applied to all student debts as they on June 1, 2025, with the average HELP debt of $27,600 set to receive a reduction of about $5520. The HECS reform will also reduce the repayment threshold for debts from $56,156 to $67,000. Rates of repayments will also be lowered then current levels, with someone on $70,000 paying $1300. Despite the Coalition not supporting the measure during the campaign, education spokesman Jonno Duniam said he expected the Bill to 'pass' parliament. Speaking to the ABC on Sunday, he said that while the legislation would still need to go through party room and shadow cabinet, he believed 'the Australian people spoke pretty clearly … around the policies the Labor Party took,' adding the party was 'not really in the business of standing in the way of cost of living relief'. Labor will also seek to introduce its cost-of-living election promises, including the $150 energy rebate top up, the 30 per cent discount on home batteries, paid prac measures for student nurses, teachers, social workers and midwives, plus a $10,000 cash bonus for trainee builders who finish their construction apprenticeship. It will also begin work on legislating a two-week increase for Government Paid Parental Leave and laws to add superannuation on government paid parental leave, while also increasing the Super Guarantee to 12 per cent. Education Minister Jason Clare will also use the first sitting week to introduce Bills to tighten protection settings in childcare centres, including provision to allow anti-fraud officers to inspect centres with a warrant or police supervision. The Coalition has also said it's open to working with the government to get the Commonwealth to pull funding on centres which fail to meet safety standards after a Victorian former childcare worker Joshua Brown was hit with more than 70 child abuse charges. While Labor holds a thumping 94-seat majority, out of a total 150 seats, in the Lower House, the government will still need to negotiate with either the Greens (which hold 10 seats), the Coalition's 27 senators, or the 10-member crossbench. After an election bloodbath, the Coalition will return with a significantly reduced 43 seats, while the Greens have been reduced to a single seat. Ahead of the official opening of the 48th parliament, Sussan Ley warned that while the Coalition would 'provide a constructive path for any legislation that makes Australia stronger,' it's 'good will is not a blank cheque'. As it stands, the opposition has already vowed to fight Labor's proposed superannuation tax on balances over $3m, with the Coalition also set to eye accidentally released treasury advice to Jim Chalmers which urged him to consider new taxes to increase the budget outlook. 'Anthony Albanese is yet to explain why his departmental officials secretly advised the Treasurer that Labor would need to raise taxes on Australians,' the Opposition Leader said. 'We will seek answers on behalf of Australian taxpayers, not one of whom should face a new tax that they didn't vote for.' It will also continue to attack Labor over its handling of Australia-US relations, following further fallout from Donald Trump's tariff trade war, with Anthony Albanese yet to secure a meeting with the US President. Originally published as Labor to act on key cost-of-living promises like 20pc HELP debt wipe-out, paid prac, $150 energy rebate
West Australian
a day ago
- Business
- West Australian
Labor to act on key cost-of-living promises like 20pc HELP debt wipe-out, paid prac, $150 energy rebate
Australians are weeks away from receiving a 20 per cent cut to their student debt, with Labor vowing to scrap HECS and HELP debt as the government's first priority once parliament resumes, following the government's landslide election victory. The changes will be applied to all student debts as they on June 1, 2025, with the average HELP debt of $27,600 set to receive a reduction of about $5520. The HECS reform will also reduce the repayment threshold for debts from $56,156 to $67,000. Rates of repayments will also be lowered then current levels, with someone on $70,000 paying $1300. Despite the Coalition not supporting the measure during the campaign, education spokesman Jonno Duniam said he expected the Bill to 'pass' parliament. Speaking to the ABC on Sunday, he said that while the legislation would still need to go through party room and shadow cabinet, he believed 'the Australian people spoke pretty clearly … around the policies the Labor Party took,' adding the party was 'not really in the business of standing in the way of cost of living relief'. Labor will also seek to introduce its cost-of-living election promises, including the $150 energy rebate top up, the 30 per cent discount on home batteries, paid prac measures for student nurses, teachers, social workers and midwives, plus a $10,000 cash bonus for trainee builders who finish their construction apprenticeship. It will also begin work on legislating a two-week increase for Government Paid Parental Leave and laws to add superannuation on government paid parental leave, while also increasing the Super Guarantee to 12 per cent. Education Minister Jason Clare will also use the first sitting week to introduce Bills to tighten protection settings in childcare centres, including provision to allow anti-fraud officers to inspect centres with a warrant or police supervision. The Coalition has also said it's open to working with the government to get the Commonwealth to pull funding on centres which fail to meet safety standards after a Victorian former childcare worker Joshua Brown was hit with more than 70 child abuse charges. While Labor holds a thumping 94-seat majority, out of a total 150 seats, in the Lower House, the government will still need to negotiate with either the Greens (which hold 10 seats), the Coalition's 27 senators, or the 10-member crossbench. After an election bloodbath, the Coalition will return with a significantly reduced 43 seats, while the Greens have been reduced to a single seat. Ahead of the official opening of the 48th parliament, Sussan Ley warned that while the Coalition would 'provide a constructive path for any legislation that makes Australia stronger,' it's 'good will is not a blank cheque'. As it stands, the opposition has already vowed to fight Labor's proposed superannuation tax on balances over $3m, with the Coalition also set to eye accidentally released treasury advice to Jim Chalmers which urged him to consider new taxes to increase the budget outlook. 'Anthony Albanese is yet to explain why his departmental officials secretly advised the Treasurer that Labor would need to raise taxes on Australians,' the Opposition Leader said. 'We will seek answers on behalf of Australian taxpayers, not one of whom should face a new tax that they didn't vote for.' It will also continue to attack Labor over its handling of Australia-US relations, following further fallout from Donald Trump's tariff trade war, with Anthony Albanese yet to secure a meeting with the US President.
Perth Now
a day ago
- Business
- Perth Now
Huge cost-of-living move coming this week
Australians are weeks away from receiving a 20 per cent cut to their student debt, with Labor vowing to scrap HECS and HELP debt as the government's first priority once parliament resumes, following the government's landslide election victory. The changes will be applied to all student debts as they on June 1, 2025, with the average HELP debt of $27,600 set to receive a reduction of about $5520. The HECS reform will also reduce the repayment threshold for debts from $56,156 to $67,000. Rates of repayments will also be lowered then current levels, with someone on $70,000 paying $1300. Despite the Coalition not supporting the measure during the campaign, education spokesman Jonno Duniam said he expected the Bill to 'pass' parliament. Labor will pursue action on its election vows to slash student debts and introduce paid prac ahead of parliament returning on Tuesday. NewsWire/ Nicholas Eagar Credit: NewsWire Speaking to the ABC on Sunday, he said that while the legislation would still need to go through party room and shadow cabinet, he believed 'the Australian people spoke pretty clearly … around the policies the Labor Party took,' adding the party was 'not really in the business of standing in the way of cost of living relief'. Labor will also seek to introduce its cost-of-living election promises, including the $150 energy rebate top up, the 30 per cent discount on home batteries, paid prac measures for student nurses, teachers, social workers and midwives, plus a $10,000 cash bonus for trainee builders who finish their construction apprenticeship. It will also begin work on legislating a two-week increase for Government Paid Parental Leave and laws to add superannuation on government paid parental leave, while also increasing the Super Guarantee to 12 per cent. Education Minister Jason Clare will also use the first sitting week to introduce Bills to tighten protection settings in childcare centres, including provision to allow anti-fraud officers to inspect centres with a warrant or police supervision. The Coalition has also said it's open to working with the government to get the Commonwealth to pull funding on centres which fail to meet safety standards after a Victorian former childcare worker Joshua Brown was hit with more than 70 child abuse charges. While Labor holds a thumping 94-seat majority, out of a total 150 seats, in the Lower House, the government will still need to negotiate with either the Greens (which hold 10 seats), the Coalition's 27 senators, or the 10-member crossbench. Politicians are set to return to Canberra on Tuesday for the first sitting fortnight of the 48th parliament. NewsWire/ Martin Ollman Credit: News Corp Australia After an election bloodbath, the Coalition will return with a significantly reduced 43 seats, while the Greens have been reduced to a single seat. Ahead of the official opening of the 48th parliament, Sussan Ley warned that while the Coalition would 'provide a constructive path for any legislation that makes Australia stronger,' it's 'good will is not a blank cheque'. As it stands, the opposition has already vowed to fight Labor's proposed superannuation tax on balances over $3m, with the Coalition also set to eye accidentally released treasury advice to Jim Chalmers which urged him to consider new taxes to increase the budget outlook. 'Anthony Albanese is yet to explain why his departmental officials secretly advised the Treasurer that Labor would need to raise taxes on Australians,' the Opposition Leader said. 'We will seek answers on behalf of Australian taxpayers, not one of whom should face a new tax that they didn't vote for.' It will also continue to attack Labor over its handling of Australia-US relations, following further fallout from Donald Trump's tariff trade war, with Anthony Albanese yet to secure a meeting with the US President.
